INNOVATIVE MARINE FUEL SOLUTIONS TO RAPIDLY TRANSITION TO NET ZERO

Jason Miles – CEO

quadrisefuels.com

1THE ROLE OF FUEL

TECHNOLOGY TO

DECARBONISE SHIPS

2BIOFUELS -

THEIR USE IN THE

MARINE SECTOR

3ALTERNATIVE

BIOFUEL

SOLUTIONS

AGENDA

2quadrisefuels.com

INNOVATIVE MARINE FUEL SOLUTIONS TO RAPIDLY TRANSITION TO NET ZERO

THE RACE TO

NET-ZERO

Options today? there are many! Is the rate of change fast enough?

What can be done today to

help transition quickly,

without incurring significant

costs or fleet changes?

We are focusing today on:

1. Improving energy efficiency

2. Lowering emissions

Using disruptive technology…

COURTESY OF THE INTERNATIONAL MARITIME ORGANISATION : IMO ACTION TO REDUCE GREENHOUSE GAS EMISSIONS FROM INTERNATIONAL SHIPPING

3

INNOVATIVE MARINE FUEL SOLUTIONS TO RAPIDLY TRANSITION TO NET ZERO

A CRASH

COURSE IN

EMULSIONS!

Water-in-oil Emulsions Oil-in-water Emulsions

THE RACE TO

NET-ZERO

4

For engines: Water helps combustion & emissions

Larger 80-100 micron

Oil droplet containing

water droplets

Water droplets

evaporate, resulting in

smaller oil droplets

Increasing

temperature

5-20%Water

80-95%Oil

Transport EmissionsProduction Port Bunkering Fuel System EngineFeedstock

WIO (Water-In-Oil emulsion fuels)

Increasing

temperature

H2O

Oil droplets burn out,

producing energy

WIO technology is

deployed at the

point of use, to

improve the

combustion of

conventional fuels

IMPROVING ENERGY EFFICIENCY

▪ Conventional emulsion systems add water to marine fuels to produce Water-in-Oil emulsions

▪ This reduces NOx (each % of water added reduces NOx by a % typically)

▪ Also improves combustion and reduces Black Carbon due to secondary fuel atomisation

▪ Potential for higher engine efficiency in some cases

▪ Implemented by installing an emulsion system on the vessel

Water-In-Oil Emulsion Fuel Technology

5

Transport EmissionsProduction Port Bunkering Fuel System EngineFeedstock

<1%Additives

Each water droplet

contains tiny (5-10

microns) oil droplets30-70%

30-70%OIW (MSAR® and bioMSAR™)

H2OH2O

Water/biofuel

Oil/biofuel

Water evaporates

dispersing tiny oil

droplets

Increasing

temperature

Increasing

temperature

Microscopic oil droplets

combust in a flame,

producing energy with

complete combustion

OIW technology is

deployed at fuel

production, to

reduce fuel costs

and emissions

IMPROVING ENERGY EFFICIENCY

▪ Uses lowest value fuel components at the refinery or fuel terminal for blending

▪ Improves blending stability, and water lowers viscosity and NOx by 20-30% typically

▪ Complete combustion from micron-sized fuel droplets, reducing Black Carbon substantially

▪ Improves engine efficiency, lowering energy consumption to achieve CO2 savings of up to 6-9%

▪ New fuel flexibility is provided by installing a separate emulsion fuel booster unit on the vessel

Oil-In-Water Emulsion Fuel Technology

6

Diesel & Marine Experience

Niels H BruusMaersk Line A/S:

“…during the MSAR® trial programme Maersk has enjoyed a close and professional collaboration with our technology partner QFI … resulting in a smooth operation during which the MSAR® fuel has performed well.”

▪ Quadrise have >60 million tons of emulsion experience

▪ 150,000 reliable running hours on 4-stroke Wartsila

engines for base-load power generation

▪ Comprehensive 2-stroke marine MSAR® programme with

Maersk, on MAN and Wärtsilä engines, resulting in:

▪ Trials on MAN D&T, Mitsui & Wärtsilä test engines

▪ Proof of concept tests at sea on Maersk Bogor and

Seago Istanbul vessels

▪ Operational trial on Seago Istanbul (~1500 hours)

▪ Interim LONO obtained on Wärtsilä Flex 96

▪ Further operational experience and full LONO in

planning phase under JDA with MSC ShipmanagementSeago Istanbul 54,000 DWT (Wärtsilä 12 RT-Flex 96 C-B)

Maersk Bogor 43,000 DWT (MAN B&W 7K80ME-C9)

7

IMPROVING

ENERGY

EFFICIENCY

LOWERING

EMISSIONS

AT LOWER

FUEL COST

Energy efficiency benefits of up to 6-9% (4S/2S)…

Result in 5-9% lower CO2 & GHG emissions well-to-wake.

Plus… reduced smoke (black carbon) & NOx emissions.8

Marine biofuel options

Fuel Supply Compatibility Cost Interest

FAME biodieselVeg oils, UCO,

tallow✓ ✓ -

Hydrotreated renewable diesel

Veg oils, UCO, tallow

✓ - ✓

FT dieselLignocellulosic

biomass, natural gas

- ✕ ✓

DME Lignocellulosic

biomass, natural gas

- ✕ ✓

MethanolLignocellulosic

biomass, natural gas

- - ✓

Is there also a role for disruptive biofuel solutions tailored for shipping?

Biodiesel, fatty acids, ??

✓ ✓ MSC

Data summarised from ICCT Working Paper Sep 2020Legend: ✓ Good; - Average; ✕ Poor

BIOFUELS

INNOVATIVE

MARINE FUEL

SOLUTIONS

TO RAPIDLY

TRANSITION

TO NET ZERO

9

Commercialising a new biofuel for marine users

x10>4m tpa of glycerine today, mostly

as a by-product of biofuel & fatty

acid & alcohol production

x1e.g. 1 barrel of crude Glycerine is produced

for every 10 barrels of biodiesel…

This can be refined for fuel applications!10

Additives

Heavy oil residuals

Water

Renewable Glycerine

Launched at the end of last year, bioMSAR™ combines the benefits of MSAR® fuel &

technology to blend renewable fuels (both oil and water based).

INNOVATIVE

MARINE FUEL

SOLUTIONS

TO RAPIDLY

TRANSITION

TO NET ZERO

▪ Glycerine has already been utilised in diesel generators

to power Formula-E race cars and VW’s record-breaking

Pike’s Peak ID R.

▪ Good potential as a marine transition fuel as not an

obvious option for aviation or road transportation:

▪ Based on 40% glycerine, CO2 emission reductions are 25%

well-to-wake or tank-to-wake.

▪ Glycerine content can be tailored to user requirements.

▪ In bioMSAR™ it can be used in existing marine diesel

engines, with only minor modifications to the fuel

handling system (same tanks, but separate fuel booster).11

Glycerine experience in diesel engines

Glycerine benefits:

✓ Non-toxic

✓ Non-flammable

✓ Good lubricity

✓ Bio-degradable

✓ Low g/MJ CO2

✓ No methane slip

INNOVATIVE

MARINE FUEL

SOLUTIONS

TO RAPIDLY

TRANSITION

TO NET ZERO

12

Energy efficiency benefits of up to 7%

Over 20% lower CO2 & GHG emissions well-to-wake

Low NOx and smoke emissions, reducing black carbon

IMPROVING ENERGY EFFICIENCY

LOWERING EMISSIONS

TRANSITION TO NET ZERO

Wärtsilä Vasa 4R32 LN DF E

13

14

SUMMARY & NEXT STEPS

INNOVATIVE

MARINE FUEL

SOLUTIONS

TO RAPIDLY

TRANSITION

TO NET ZERO

▪ bioMSAR™ successfully tested on 4S Wärtsilä & high-speed diesels

▪ Recent bioMSAR™ testing confirmed;

✓ Engine performance was very similar to MSAR® & other fuels

✓ High engine efficiency of up to 7%, as seen with MSAR®

✓ Lower CO2 emissions per kWh calculated (WTW or TTW)

✓ Overall NOx emissions were similar to MSAR®

✓ Low smoke, THC and CO with bioMSAR™

▪ As with MSAR®, which was successfully tested on ME and Flex

engines, bioMSAR™ also needs to be tested on a 2S engine

▪ Further options to expand global supply of glycerine being studied

▪ New opportunities to incorporate other renewable fuels into the

oil or water phases of the fuel using MSAR® blending technology

to enhance the stability of marine transition fuels

INNOVATIVE

MARINE FUEL

SOLUTIONS

TO RAPIDLY

TRANSITION

TO NET ZERO

15

Q&A

16quadrisefuels.com

ANY QUESTIONS?

INNOVATIVE

MARINE FUEL

SOLUTIONS

TO RAPIDLY

TRANSITION

TO NET ZERO